Address On Banking Ends Accountant Society’s Year

Wanganui Chronicle, 2 November 1948, Page 7

Address On Banking Ends Accountant Society’s Year

The year’s activities of the Wanganui Accountant Students’ Society were concluded last Wednesday with a luncheon at which Mr. A. G. Dooley A.R.A.N.Z. lectured on banking.

“Banks function to trade,” stated Mr. Dooley, “and because of the great volume and variety of work done by bank officers commerce proceeds smoothly. The clearing of cheques and documents for customers is a valuable service, but only one of the many offered. These include the operation of current accounts, and the provision of excellent short-term investments by the medium of fixed deposits. “If negotiable securities are entrusted io a bank,” continued the speaker, “the dividends or interest accruing are collected for the owner as they become due. Payment for imports and the collection of proceeds from exports involve a considerable amount of detailed work; but this is undertaken by the banks and the matter is simplified for the trader.” A most important function of a bank was that of lending, Mr. Dooley pointed out. By first mortgage on land, assignment of life insurances and shares, charges . over stock dnd other assets, and by debentures in the case of campanies, banks secured , In the final portion of his address, Mr. Dooley explained the principles of overseas exchange. After mentioning barter, he described how the comparative quality of gold coinage had lixed the mint par of exchange and how small fluctuations between specific points above and below this occurred according to the costs of shipping gold. Since abandonment of the golct standard, exchange (in free trading conditions) had been regulate | by supply and demand. If a country’s currency was in demand it appreciated in value. Finally, the speaker pointed out that the balance of trade between two countries determined the demand for currency, and mentioned the factors which affect this balance.

‘This informative lecture has been a fitting conclusion to our year,” said the president of the society (Mr. B. D. Veitch) in thanking Mr. Dooley for his address. Mr. Veitch supplied figures from the recent trial examinations conducted by the N.Z. Federation of Accountant Students, and after stressing the value of such preliminaries wished student members success in their November exams.